What is Fuel Adjustment Charge (FAC) / Fuel Surcharge on Your Electricity Bill?

Published July 2026

Most Indian electricity bills include a line item variously called Fuel Adjustment Charge (FAC), Fuel Cost Adjustment (FCA), or Fuel & Power Purchase Cost Adjustment (FPPCA/FSA).

Why Does It Exist?

DISCOMs buy power from generators whose fuel costs (coal, gas) fluctuate. Rather than revise the entire tariff structure every time fuel prices move, regulators allow a variable surcharge that is reviewed and adjusted quarterly to pass through these cost changes.

Why Isn't It in Our Calculator?

Because FAC/FCA/FSA rates change quarter to quarter and are published separately from the base tariff order, including a stale figure would make our estimates look more precise than they actually are. Instead, each of our state calculators shows a note about the applicable surcharge type so you can add the latest published rate yourself from your DISCOM's website for a more accurate estimate.

Typical Range

In most states this surcharge ranges from roughly ₹0.05 to ₹0.50 per unit, though it can vary more in periods of high fuel price volatility.

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